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Copyright Dr. Vijay Sharma , Govt. Eng.College Bikaner

PRODUCT DECISIONS

Dr. Vijay Sharma

Department of Management

Govt. Engineering CollegeBikaner

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What is a Product

A PRODUCT is anything that can be offered to amarket for attention, acquisition, use, orconsumption and that might satisfy a want or need.

Includes: Physical Objects Services Events Persons Places Organizations Ideas Combinations of the above

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What is a Service

A SERVICE is a form of product that consistof activities, benefits, or satisfactions offeredfor sale that are essentially intangible and donot result in the ownership of anything.

Examples include:

Banking

Hotels

Tax preparation

Home repair services

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Products, Services, and Experiences

PureTangible

Good

PureService

Soap

Tangible GoodWith

AccompanyingServices

Auto WithAccompanying

RepairServices

HybridOffer

Restaurant

ServiceWithAccompanying

Minor Goods

Airline TripWith

AccompanyingSnacks

DoctorsExam

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Levels of Product (Fig. 8-1)

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Unsought Products

New innovations

Products consumers dontwant to think about Require much advertising &personal sellingi.e Life insurance, blood donation

Product Classifications: Consumer

Specialty Products

Special purchase efforts

High price Unique characteristics Brand identification Few purchase locationsi.e Lamborghini, Rolex

Shopping Products

Buy less frequently Higher price Fewer purchase locations

Comparison shopi.e Clothing, cars, appliances

Convenience Products

Buy frequently & immediately Low priced Mass advertising Many purchase locationsi.e Candy, newspapers

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Supplies and ServicesOperating supplies, repair/

maintenance items

Materials and PartsRaw materials, manufactured

materials, and parts

Capital ItemsIndustrial products that aid in

buyers production or operations

Product Classifications: Industrial

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Product Classifications:Other Marketable Entities

Activities undertaken to create, maintain, or change the attitudes

and behavior toward the following:

Organizations - Profit (businesses) and nonprofit (schools andchurches).

Persons Politicians, entertainers, sports figures, doctors, andlawyers.

Places - Business sites, new residents, and tourism.

Ideas (social ideas marketing)

Public health campaigns,environmental campaigns, and others such as family planning,or human rights.

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Popular Classification

White goods comprise large and small sized domestic appliances,such as refrigerators, washing machines, microwaves, coffeemachines and irons. Whilst the large sized domestic appliancesbenefit from improved innovation, design and environmental

efficiencies, they are established markets with high householdpenetration rate where volume is driven by a need or desire toreplace the product.

Brown goods includes all vision and audio products such as flat-screen televisions, DVD players, MP3 players and camcorders.

Grey goods includes telecommunications and multimedia productssuch as mobile telephones, personal computers, laptops, digitalcameras, printers, scanners, games and electronics.

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Individual Product Decisions(Fig. 8-2)

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Product Quality

Product Features

Product Style& Design

Ability of a Product to Perform ItsFunctions; Includes Level &

Consistency

Differentiates the Product from

Competitors Products

Process of Designing a ProductsStyle & Usefulness

Developing a Product or Service Involves Definingthe Benefits that it Will Offer Such as:

Product Attributes

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Product Quality

Quality is one of the marketer's major positioning tools. Product quality has two

dimensionslevel and consistency.

In developing a product, the marketer must first choose a quality level that will

support the product's position in the target market. Here, product quality means

performance

qualitythe ability of a product to perform its functions beyond quality level, high

quality also can mean high levels of quality consistency. Here, product quality means

conformancequalityfreedom from defects and consistency in delivering a targeted level of

performance. All companies should strive for high levels of conformance quality.

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Product FeatureA product can be offered with varying features. A stripped-down model, one without anyextras, is the starting point. The company can create higher-level models by adding more

features.

Features are a competitive tool for differentiating the company's product from

competitors' products. Being the first producer to introduce a needed and valued new

feature is one of the most effective ways to compete.How can a company identify new features and decide which ones to add to its product?

The company should periodically survey buyers who have used the product and ask these

questions:

How do you like the product? Which specific features of the product do you like most?

Which features could we add to improve the product? The answers provide the company

with a rich list of feature ideas. The company can then assess each feature's value to

customers versus its cost to the company.

Features that customers value little in relation to costs should be dropped; those that

customers value highly in relation to costs should be added.

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Product Style and Design

Another way to add customer value is through distinctive productstyle and design. Some companies have reputations foroutstanding style and design. Design is a larger concept thanstyle. Style simply describes the appearance of a product. Stylescan be eye catching or yawn producing. A sensational style maygrab attention and produce pleasing aesthetics, but it does notnecessarily make the product perform better. Unlike style, designis more than skin deepit goes to the very heart of a product.Good design contributes to a product's usefulness as well as toits looks.

Good style and design can attract attention; improve productperformance, cut production costs, and give the product a strongcompetitive advantage in the target market

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